Getting into RE Investing and BRRRR

[Ryan Williams]

Good morning BP Family. I've recently begun my journey in RE investing and am building and doing an audit of my core four sooner than later. I found an RE agent in my desired location who was recommended to me by several trusted sources, this RE agent is also a property manager for residents across several cities within the state.

My agent also has their own contracting crew, when bringing this up at my first RE investing community gathering (just a couple of weeks ago), I was highly advised against having my agent also act as my GC (for lack of better terms) and to find a different contractor to do the work. The wiser and more experienced investors didn't necessarily mention it was a conflict of interest to have an agent, also act as a GC. Still, they were hinting more at the fact that executing a BRRRR deal (or any for that matter) way was more akin to financial ignorance and perhaps negligence on my part.

I'm hoping someone in the community could expound upon this potential risk for me and why it's a poor idea.

I appreciate any and all replies.

Thanks,
-Ryan

[Andrew Postell]

@Ryan Williams I personally don't have an issue with someone doing 2 things I would prefer that your contractor come from another source.  Meaning, there are other real estate investors in your market - who are they using?  That's one of the main reasons why we network with other investors - we get to learn what they are doing and who they are using.  So maybe get a 2nd source for your contractor from another investor and that will help.

Also, keep in mind that most of the BRRRR properties that we find are from "off market" houses. Meaning, houses that realtors often cannot find. Another reason to network with other real estate investors in your area - to find out the techniques they use to find deals.

Hope all of that makes sense.  Thanks!